New Interstate Truckers Should Be Granted Temporary Operating Authority More Readily

CED-78-32: Published: Feb 24, 1978. Publicly Released: Feb 24, 1978.

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The Interstate Commerce Commission (ICC) controls entry and service levels by granting operating authority only to truckers who show that their service is needed by shippers and by limiting the truckers' authority to carrying specific commodities in geographic areas. The objective is to assure a quality trucking system that meets the needs of the shipping public while protecting regulated truckers form excessive competition.

Because of the time and expense involved in an application for permanent authority, truckers often use the temporary authority procedure as a stepping stone to a permanent authority. ICC policies and procedures for deciding to grant or deny temporary authority applications may unduly favor authorized truckers by: providing them the right to handle all traffic, placing the burden of proof primarily on the applicant trucker and his supporting shippers, and providing inadequate guidelines to shippers supporting applications. Granting authority to new truckers, where authorized truckers would not be harmed, could be one means of providing better service to the shipping public and more entry for truckers. The current process for granting temporary operating authority does not always give shippers the service they want while it protects regulated truckers from competition.

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